After making the policy announcement for internet-only bank establishment last April, the FSC received applications from three consortiums led by LINE, Chunghwa Telecom and Rakuten Bank in February, 2019. Following the completion of the review process by the review panel, the FSC announced on July 30, 2019 that the three applicants had been granted approval to set up internet-only banks.
The FSC expects that the three banks will drive market innovation and development, as well as exert the catfish effect through new business models and technologies, and hence enhance financial inclusion. In addition, the FSC requires that the internet-only banks must build a strong risk management and data protection system in place while developing technology innovation. The FSC urges the three banks to implement their business plans and commitments, including financial support. The FSC will cooperate with the Central Bank to strengthen the supervision of internet-only banks.
Regarding the supervisory focus on internet-only banks, the FSC states that various aspects will be monitored including liquidity risk management, credit risk management, operational risk management, reputational risk management, corporate governance framework, market competition behavior and consumer protection.